Iran’s Revolutionary Guards (IRGC) have significantly increased their control over the country’s oil exports, now managing up to half of the oil, compared to around 20% three years ago. Despite Western sanctions reimposed in 2018, Iran continues to earn over $50 billion annually from oil, its largest source of foreign revenue.
The IRGC has expanded its influence by taking over smuggling operations and sidelining state bodies like the National Iranian Oil Company (NIOC). A significant portion of Iran’s oil exports is sold to China through front companies, with the IRGC offering deep discounts to buyers, compensating for the risks of purchasing from a designated terrorist group.
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The IRGC’s growing dominance is making it harder for sanctions to impact Iran’s economy, as the Guards have perfected smuggling techniques that allow them to bypass restrictions. The U.S. and Israel have imposed sanctions on the IRGC’s oil trade and vessels involved in this “ghost fleet.” Despite these challenges, the IRGC continues to support its regional proxies, including Hezbollah, through the oil revenue, while maintaining a significant presence in global oil trade through covert operations.
